On 31 December 2022, Mayflower Limited ("Mayflower") had the following ordinary shares and nonconvertible preference shares: - 300,000 shares of ordinary shares - 150,000 shares of non-cumulative, nonconvertible preference shares issued and outstanding - Issued a 4% bonus issue of ordinary shares on May 20 and paid cash dividends of $200,000 and $37,500 ordinary and preference shareholders respectively, on December 20, 2023. On March 1, 2023, Mayflower issued 30,000 ordinary shares. In keeping with its long-term share repurchase plan, 1,000 treasury shares were retired on July 1. Mayflower's net income for the year ended December 31,2023 was $1,050,000. The income tax rate is 20%. Besides, as a part of a 2022 agreement for the acquisition of Joy Company Limited, a further 11,500 shares (already adjusted for the bonus issue) are to be issued to former Joy shareholders on December 31, 2024, if Joy's 2024 net income is at least $250,000. In 2023, Joy's net income was $325,000. As part of an incentive compensation plan, the company granted stock options to top executive management at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised on year from that date. Information concerning the number of options granted and common stock prices follows: During 2023 , the average market price of the common shares was $32. None of the share options or convertible bonds were exercised or converted during the year. On July 12, 2021, Mayflower issued $400,000 of convertible bonds. Each $1,000 bond is convertible into 30 ordinary shares (adjusted for the bonus issue). The interest expense on the liability component of the convertible bonds in 2023 was $45,750. Required: (i) Compute Mayflower Limited's Diluted Earnings per Share (EPS) for the year ended 31 December 2023. Answer should be rounded to 2 decimal places. (13 marks) (ii) Comment any antidilutive effect found in the calculation of Diluted Earnings per Share (EPS). (2 marks) On 31 December 2022, Mayflower Limited ("Mayflower") had the following ordinary shares and nonconvertible preference shares: - 300,000 shares of ordinary shares - 150,000 shares of non-cumulative, nonconvertible preference shares issued and outstanding - Issued a 4% bonus issue of ordinary shares on May 20 and paid cash dividends of $200,000 and $37,500 ordinary and preference shareholders respectively, on December 20, 2023. On March 1, 2023, Mayflower issued 30,000 ordinary shares. In keeping with its long-term share repurchase plan, 1,000 treasury shares were retired on July 1. Mayflower's net income for the year ended December 31,2023 was $1,050,000. The income tax rate is 20%. Besides, as a part of a 2022 agreement for the acquisition of Joy Company Limited, a further 11,500 shares (already adjusted for the bonus issue) are to be issued to former Joy shareholders on December 31, 2024, if Joy's 2024 net income is at least $250,000. In 2023, Joy's net income was $325,000. As part of an incentive compensation plan, the company granted stock options to top executive management at December 31 of the current and each of the previous two years. Each option permits its holder to buy one share of common stock at an exercise price equal to market value at the date of grant and can be exercised on year from that date. Information concerning the number of options granted and common stock prices follows: During 2023 , the average market price of the common shares was $32. None of the share options or convertible bonds were exercised or converted during the year. On July 12, 2021, Mayflower issued $400,000 of convertible bonds. Each $1,000 bond is convertible into 30 ordinary shares (adjusted for the bonus issue). The interest expense on the liability component of the convertible bonds in 2023 was $45,750. Required: (i) Compute Mayflower Limited's Diluted Earnings per Share (EPS) for the year ended 31 December 2023. Answer should be rounded to 2 decimal places. (13 marks) (ii) Comment any antidilutive effect found in the calculation of Diluted Earnings per Share (EPS). (2 marks)